Liability Insurance

Liability insurance protects individuals and businesses against financial liabilities resulting from injuries to any person and property damage. It provides coverage for any legal cost or debt that the responsible party is found legally guilty of. However, this policy does not cover claims for intentional damages, criminal prosecution, and contractual liabilities.

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Liability from Product or Service
Property damage or Bodily Injury
Medical & Legal Costs Covered

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Medical & Legal Costs Covered
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Why is Liability Insurance Required?

The Problem

In today's litigious environment, individuals and businesses confront the constant threat of legal actions and claims filed against them. Whether it's a slip-and-fall accident on business premises or a customer alleging property damage caused by a faulty product, the dread of financial liabilities is ever-present. Such liabilities can swiftly escalate into expensive legal battles without adequate protection, causing substantial financial strain and reputational harm to all parties involved.

The Solution

To reduce these risks and ensure financial stability, the adoption of liability insurance becomes imperative. This specialized insurance coverage acts as a safety net for individuals and businesses. It provides financial security against claims of bodily injury, property damage, and legal expenses, safeguarding their assets and reputation amidst adversity.

Note: Liability insurance is covered under general insurance policies. The scope of liability insurance in India is defined by the Public Liability Insurance Act 1991.

Liability Insurance: Inclusions

The policy provides coverage for the following:

  • Financial expenses incurred due to lawsuits filed against the insured
  • Expenses incurred during investigations and settlements
  • Financial coverage for the fees of investigating officer or hired lawyer after being sued by a third party
  • Medical expenses incurred after an accident on the insured person’s premises that led to a third-party claim
  • Medical expenses incurred after an accident from any of the insured person’s products or during official operations
  • Any loss or damage caused to the third party's property while visiting the office of the insured person

Liability Insurance: Exclusions

The insurance policy does not provide coverage for the expenses arising out of the perils:

  • Willful misconduct and intentional damages 
  • Loss or damage incurred as a result of natural disasters such as cyclones, volcanic eruptions, floods, storms, earthquakes, or windstorms
  • Loss in the market and loss of goodwill
  • Libel and slander
  • Expenses coming out of wrongful eviction, defamation and false arrest
  • Infringement of patents, copyrights, trademarks, trade names, etc.
  • Fines and penalties
  • Transportation of dangerous substances and materials unless opted for a separate kind of coverage 
  • Loss or damage caused due to war, nuclear war

Types of Liability Insurance in India

There are different types of liability insurance policies that are available in India. Some of the most common liability insurance policies are:

Public Liability Cover

Public liability insurance protects individuals and businesses from financial liabilities arising from bodily injury or property damage to third parties (excluding employees) caused by their operations or premises. It is essential for businesses that interact with the public, such as retail stores, restaurants, and service providers.

Professional Indemnity Cover

Professional indemnity insurance, also known as professional liability insurance, offers professionals safeguarding against allegations of errors, negligence or omissions in the services they deliver. Professional liability insurance is crucial for professionals such as doctors, lawyers, consultants, and architects who provide services to clients.

Directors and Officers Liability Insurance

Directors and officers liability insurance safeguard corporate directors and officers from personal financial liabilities arising from claims of wrongful acts or decisions made in their official capacity. It is essential for companies of all sizes and their executives, including directors, officers, and board members.

  • Unlawful acts
  • Releasing confidential information
  • Conflict of interest
  • Failure to maintain the property
  • Gross negligence

Errors and Omissions Insurance

Errors and omissions (E&O) insurance covers professionals against claims of negligence, errors, or omissions in their services. It is necessary for professionals such as insurance agents, real estate agents, financial advisors, and IT consultants.

Employer Liability

Employer liability insurance, often associated with workers' compensation, protects employers from financial liabilities arising from work-related injuries or illnesses that employees suffer. It is mandatory for employers in India to purchase a workmen's compensation policy for their workers.

Product Liability Insurance

Product liability insurance covers manufacturers, distributors, and retailers against claims of bodily injury or property damage caused by defective products they design, manufacture, or sell. It is essential for businesses involved in the manufacturing, distribution, or sale of products.

Third Party Liability Insurance

Third party liability insurance protects individuals and businesses from financial liabilities arising from claims made by third parties for bodily injury, property damage, or other losses caused by the insured's actions or negligence. It is crucial for individuals and businesses in various industries, including construction, transportation, and hospitality.

Who should Buy Liability Insurance?

The liability insurance coverage is designed for companies or individuals who are held legally liable for injuries or other issues mentioned above. This type of insurance policy is most suitable for doctors, hospitals, business owners, etc.

For instance, if a product manufacturing company sells an item that unintentionally causes loss or damage to a consumer, the consumer may file a lawsuit against the manufacturer.

However, if the manufacturing company has obtained a liability insurance policy, the insurer will cover the resulting loss or legal expenses, provided the damage was unintentional. This coverage offers financial security to businesses facing legal claims or lawsuits arising from unintended incidents, ensuring their assets are protected.

How is the Liability Insurance Premium Decided?

The insurance company considers different factors before deciding the premium amount for a liability insurance policy taken by an individual or a company. The first and foremost factor that affects a policy's premium is the amount of risk a company's product can cause. The higher the risk, the higher the premium amount will be.

Other factors that are considered by an insurance company include:

  • The claim history of the insured
  • The approach of the company toward the risk
  • The business record of the company

How to Raise a Claim Under Liability Insurance?

Follow the steps mentioned below to raise a claim under liability insurance:

Step 1: Inform your relationship manager about the incident. 

Step 2: Complete and submit the claim form shared by them.

Step 3: Your provided information will be sent to the insurance company for evaluation and claim registration, resulting in the generation of a claim reference number.

Step 4: The insurer will designate a surveyor upon initiating the claim.

Step 5: Following the survey, the assigned surveyor will specify the necessary documentation.

Step 6: Submit all required documents as instructed by the surveyor and await processing.

Step 7: Upon approval, the insurance company will release the claim funds.

Please note: The insurer will carefully review the terms and conditions of your policy to determine coverage for the claimed incident. Consequently, the decision to accept or reject the claim will be made at the insurer's discretion.

Why Should You Buy Liability Insurance via Policybazaar for Business?

  • Assigned Relationship Manager: Upon commencement, you'll be assigned a dedicated relationship manager, offering ongoing support and advice to safeguard your business from potential risks.
  • 365-Days Claim Support: Our dedicated team of claim experts is available every day of the year, ensuring seamless and expedited processing of your claims 365 days a year.
  • Expert Advisory: Our business risk consultants provide customized guidance for your unique requirements and preferences.
  • Competitive Pricing: Leveraging our broad network of insurer partners, we deliver competitive quotes from top insurers, guaranteeing you the most favorable rates in the market without compromising on service excellence.


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Policybazaar for Business - Liability Insurance - Customer Reviews
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Based on 24 reviews
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Based on 24 reviews
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4.3 December 17, 2022
Reliable And Trustworthy Insurance Plan
I appreciate the transparency and the value for money I received with my liability insurance from Policybazaar website. I highly recommend their services to anyone seeking reliable and trustworthy insurance coverage.
4.3 November 30, 2022
Satisfying Plan
I reecntly got to know about Liability insurance from policybazaar website, when i visited that i came to know about their affordable premium plans and comprehensive coverage. I imediately bought the plan and now i am satisfied with the purchase.
4.3 November 13, 2022
Smooth And Hassle Free
I recently purchasied Liability insuramce from PolicyBazaar website online.The claims process was smooth and hassle-free and they handled everything promptly. It was a great experience. Thankyou.
4.3 October 27, 2022
Good Decision
Choosing liability insurance from Policybazaar website was a smart decision. Their customer service team was extremely helpful and guided me through the entire process.Thankyou PB.
4.3 October 25, 2022
Wonderful Customer Support
I recently purchased Liability Insurance from PolicyBazaar website. From start to finish, their service has been outstanding and I am so much satisfied with the kind of coverage and peace of mind I got after purchasing this policy. Thanks Policybazaar.
4.3 October 05, 2022
Gauri Rathi
User Friendly Website
PolicyBazaar's website is user-friendly and easy to navigate. I was able to obtain a quote for LiabilityInsurance effortlessly and the entire process was so easy. The website provided detailed information about the coverage options, allowing me to make an informed decision based on my specific needs.
4 June 09, 2022
Online Claims
These days, purchasing product insurance is a necessary in order to protect against any damages produced by the goods. Ours has been claimed over the internet.
4 June 09, 2022
Reasonably Priced
Property insurance is required these days, and we purchased ours from PolicyBazaar. It was reasonably priced and included a variety of coverages for property damage.
4.5 June 09, 2022
Good Claims
We were grateful that we had purchased insurance to cover the loss of revenue for both ourselves and our staff. During the corona, it truly saved the day. Policybazaar had given it to us, and we had claimed it.
5 June 09, 2022
Fantastic Policy
We purchased an employee insurance policy to cover our employees illnesses and injuries. Our employees are now protected, and it is a fantastic policy that we purchased from PolicyBazaar.

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